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Arrears, Default & Recovery
Where there is the possibility that missed payments and arrears can develop on a customer’s account, the company has detailed procedures in place for dealing with the customer and the arrears. We always aim to get the customer back on track with their payment arrangement in the shortest time possible whilst ensuring that we take the customer’s personal circumstances and situation into consideration.
Staff are provided with clear guidance and training materials on handling defaulted accounts and are given scripted sheets and information packs for reference to ensure that they understand the implications of an account in arrears and that they can advise the customer accordingly.
Our approach to default accounts also takes into consideration the MALG guidance and we follow our own Vulnerable Customers procedures to ensure that no extra undue stress or financial burden is placed on the customer.
All software packages and systems are either automated to ensure that accounts were arrears may occur can be easily identified and monitored, or where automated systems are not used, we have procedure sin place to ensure that staff are able to identify any such account before the arrears become to advanced.
The controls, systems and procedures set up for Arrears are subject to the same auditing and assessments as all other procedures so that we can monitor and maintain compliance with the regulations at all times. the company confirms that any arrears guidance, training and procedures have been developed to meet the requirements set out in section CONC 7 of the FCA Handbook.
21.16.1 Introduction to Arrears
For the purposes of our procedures, the company defines arrears to mean that one or more payments have been missed on an account. In these instances, we have procedures in place to identify the account and customer and to contact them immediately to discuss the reason for the initial missed payment.
Where we can re-set a payment arrangement or collect the defaulted mount with immediate effect, the account is taken out of the arrears status and normal payment patterns are resumed, however it is our policy to flag the account so that if any further payments are missed, our staff are aware that this is a reoccurring situation, which better helps us to identify customers in financial difficulty.